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Russia/ 5.1 General legislation  

5.1.5 Tax laws

Overall, the Taxation Code (1998-2000) has eliminated almost all deductions on principal, which is regarded as contradictory to the very core policies of cultural support. In that sense, it does not support cultural production, nor does it encourage investment or support from the private sector. The Main Directions of Taxation Policies in the Russian Federation for 2008-2010 do not stimulate state-private partnerships in the cultural sector.

Tax shelters for cultural actors are not numerous. The Taxation Code exempts from taxation repair and restoration works within the renovation of cultural and historical monuments, maintenance of cultural objects and free charitable transfer of goods, works, or services. In 2010, a new statement came into force, which exempts from VAT culturally valuable objects imported by the state or municipal museums, libraries, and archives whether bought with public money or gifted. There is a list of tax-exempt national or foreign grants and cultural, literary, artistic, and mass media awards, which are approved by the government.

According the Law on Formation and Use of Endowment by Non-commercial Organisations (2006), endowment assets are exempt from VAT, and their use and income are profit tax exempt. However, these benefits concern beneficiaries and do not stimulate benefactors.

Tax shelters for cultural actors are not numerous. The Taxation Code presupposes tax exemption for construction, buildings and premises that belong to artists or folk craftsmen as a property, specially equipped and used as workshops, as well as for parts of the building that are used for private exhibitions, libraries, galleries, museums, etc. that are open to the public. In the Taxation Code, there are special professional deductions for materials and expendable supplies used by artists and writers who receive author's fees.

Chapter published: 11-04-2013

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